Markup and Markdown

Front

What is a markup?

Back

A markup is the amount added to the cost price of a product to determine its selling price. It is usually expressed as a percentage of the cost price.

Front

What is a markdown?

Back

A markdown is a reduction in the original selling price of a product. It is often used to encourage sales and clear out inventory.

Front

How do you calculate the selling price with a markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Front

How do you calculate the sale price with a markdown?

Back

Sale Price = Original Price - (Markdown Percentage × Original Price)

Front

If a product costs $50 and has a markup of 20%, what is the selling price?

Back

Selling Price = $50 + (20% of $50) = $50 + $10 = $60.

Front

If a video game is originally priced at $60 and is on sale for 30% off, what is the sale price?

Back

Sale Price = $60 - (30% of $60) = $60 - $18 = $42.

Front

What is the formula to find the original price after a markdown?

Back

Original Price = Sale Price / (1 - Markdown Percentage)